Alcala Imports has annual revenue of $506,000with costs of $369,400. Depreciation is $64,900and the tax rate is 21 percent. The firm has debtoutstanding with a market value of $240,000along with 7,500 shares of stock that is valued at$87 per share. The firm has $51,200 of cash, all ofwhich is needed to run the business. What is thefirm's EV/EBITDA ratio?6.535.396.286.376.15

The EV/EBITDA is computed as shown below: Using the formula, The EV/EBITDA = (Market value of debt +…

Answered: Alcala Imports has annual revenue of…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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